NEW DELHI—India’s federal government Tuesday raised a factory-gate tax on diesel and gasoline for the second time in less than a month to take advantage of falling global oil prices and improve weak finances.

The government raised the excise tax on diesel by 1 rupee ($0.016) a liter and on gasoline by 2.25 rupees a liter, Finance Minister Arun Jaitley said in the upper house of Parliament.